Agenda Item No. 10
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 27, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Greg Ray, Public Works Director/City Engineer Erin Wiggin, CIP Manager
SUBJECT: Award of Construction Contract for Measure K-14 Street Improvements (CIP 2295-14 and 2274 - Nacimiento Avenue, Owens Court, Mono Court, Angello Terrace, Ocean View Avenue, South 7th Street and Trouville Avenue) and Sidewalk Infill Project
RECOMMENDATION
Award the contract for construction of CIP 2295-14 and CIP 2274 as part of the Measure K-14 Street Rehabilitation Program to Granite Construction Company in the amount of $2,327,327 for the Base Bid; authorize the City Manager to sign and affirm construction and construction management change orders up to an aggregate of $230,000; and authorize the Mayor to execute the contract on behalf of the City.
BACKGROUND
The Council identified Street Improvements as one of the Major City Goals for FY 2021-23. Voters approved Measure K-14 in November 2014 which authorizes the sale of up to $48 million in bond funds for repair of residential streets. The Council issued the first $13 million in bond funding in 2015 and 2016 and the Council approved another $15 million in bond funding in 2017. The first 13 projects funded by Measure K-14 are complete and have provided comprehensive maintenance and repair of nearly 240 city blocks which represents over 60% of all local city streets.
The next Measure K-14 street project is CIP 2295-14 which includes a total of 24 blocks of street rehabilitation including Nacimiento Avenue, Mono Court, Owens Court, Angello Terrace, Ocean View Avenue (4th Street to Charles), Trouville Avenue (4th Street to 10th Street), South 7th Street (Long Branch Avenue to Seabright) and South 7th Street (Trouville Avenue to Mentone Avenue).
The City hired design consultant Cannon Corporation earlier this year to develop the project bid documents which depict the street improvements and mandated accessibility upgrades.
Bids for CIP 2295-14 and 2274 were opened on June 15, 2022 and the City received four bids ranging from $2,327,327 to $3,045,999 compared with the Engineer’s Estimate of approximately $2,400,000. The lowest responsive and responsible bidder is Granite Construction Company from Santa Barbara with a bid of $2,327,327. Staff has completed a review of Granite Construction’s qualifications and capability to complete the project and is recommending the Council award the construction contract to the firm. Pending the Council’s award of construction contract, preliminary construction on this project is expected to begin in August 2022. The actual project schedule will be determined following award of the construction contract.
Staff Report: Award of Construction Contract Measure K-14 (CIP 2295-14 and CIP 2274) Page 2 June 27, 2022
FISCAL IMPACT
This project is funded primarily with Measure K-14 funds. The sidewalk infill work is funded with $50,000 from Gas Tax funds as part of the new sidewalk incentive program where affected residents could contact the City and fund 50% of the cost of sidewalk infill in front of their home with the City funding the other 50% with Gas Tax funds. Eight properties are participating in this program as part of this project. $40,000 from the Water Fund is included for targeted water improvements including hydrant improvements. The total project cost includes the lowest bid plus contingency as identified above for a total of $2,557,327. Staff is recommending the Council award to Granite Construction Company in the amount of $2,327,327 and authorize the City Manager to approve the construction contract and contract change orders, if necessary, up to an additional $230,000.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Award the contract for construction of CIP 2295-14 and CIP 2274 as part of the Measure K-14 Street Rehabilitation Program to Granite Construction Company in the amount of $2,327,327 for the Base Bid; authorize the City Manager to sign and affirm construction and construction management change orders up to an aggregate of $230,000 and authorize the Mayor to execute the contract on behalf of the City; or
2. Delay award of the project and provide additional direction to staff; or
3. Reject all bids, modify the project, and re-advertise for bids as soon as possible.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Bid results
2. Map of streets included in CIP 2295-14
Bid Opening Date: Wednesday, June 15, 2022 @ 2:00 p.m.
Bids for: Measure K‐14 Street Rehabiliation and Repair Project, CIP 2295‐14 Sealed Bids Received from:
No. Company Name & Address Total Base Bid
(Page 7)
1 SOUZA CONSTRUCTION P.O. Box 3810 San Luis Obispo, CA 93403 $2,337,585.00 2 S. CHAVES 11545 Los Osos Valley Rd. Ste. C‐3 San Luis Obispo, CA 93405 $2,667,482.00 3 GRANITE CONSTRUCTION CO. P.O. Box 6744 Santa Barbara, CA 93160 $2,327,327.00 4 PAPICH CONSTRUCTION INC. 398 Sunrise Terrace Arroyo Grande, CA 93420 $3,045,999.00
5 6
7 *Bid results are subject to verification by engineering.
City of Grover Beach Bid Opening Results
6/15/2022 1 of 1
Attachment 1
Project #2295-14
Project identified by City Council 7/20/2020
& 4-12-21
Design and Construction schedule TBD
STREET LIST:
1. Trouville Avenue, South 4th Street—South
10th Street
2. South 7th Street, Longbranch Avenue—
Seabright Avenue
3. South 7th Street, Trouville Avenue—
Mentone Avenue
4. Ocean View Avenue—4th to Charles
5. Nacimiento Avenue
6. Mono Court
7. Owens Court
8. Margarita
9. Angello Terrace
Attachment 2